Synch shutdowns

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thom02099
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Re: Synch shutdowns

Postby thom02099 » Sun Jul 17, 2016 11:16 am

Credit is not a competitive sport. Unfortunately, many "over there" seem to think so.
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CarefulBuilder14
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Re: Synch shutdowns

Postby CarefulBuilder14 » Wed Jul 20, 2016 9:59 pm

The "wisdom" on there just changes so quickly...

After a wave of AA, people decide it's time to stop asking for CLIs they don't need...
...from Synchrony.

But full speed ahead on other unnecessary CLIs on other cards...until those cards become the AA flavors of the month in October.

Then it will be back to good old reliable Synchrony!
Warranties and sketchy merchants: Schwab Platinum
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Travel insurance: Prestige, CSP
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Limited value, might close: Arrival

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MemberSince99
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Re: Synch shutdowns

Postby MemberSince99 » Thu Jul 21, 2016 7:48 am

CarefulBuilder14 wrote:The "wisdom" on there just changes so quickly...

After a wave of AA, people decide it's time to stop asking for CLIs they don't need...
...from Synchrony.

But full speed ahead on other unnecessary CLIs on other cards...until those cards become the AA flavors of the month in October.

Then it will be back to good old reliable Synchrony!


Let's be honest almost none of us need clis. If your only card is a cap one starter with a 500 limit yeah you do.really need a cli. But most of us don't but that doesn't mean we can't benefit from them.

I don't have a problem with the concept get as much as you can. They can always decline and sometimes they do.

I really can't fault them for getting the limit as high as possible. Far more stupid is applying for 20 commenity cards they won't ever use and getting a bunch with 200 limits that's just idiotic

TXviking
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Re: Synch shutdowns

Postby TXviking » Thu Jul 21, 2016 10:42 am

The credit card industry has caused the quest for ridiculous credit lines by penalizing people for using their available credit.

It's not unreasonable for someone to put $5K or $10K on a 0% balance transfer offer. But if your available credit is 15K, you now massively hurt your score. Having a ridiculously high limit allows you to do a transaction like that without your utilization looking "too high". That creates a direct incentive to seek out high credit lines even if you never actually use them.

Kevin86475391
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Re: Synch shutdowns

Postby Kevin86475391 » Thu Jul 21, 2016 7:05 pm

TXviking wrote:I cancelled my last two Synchrony accounts (one with City Furniture, one with La-z-boy) once all my new furniture was paid off. I only got the accounts for the umpteen-months-same-as-cash financing deal, and saw no need for them anymore. The credit lines in both cases were suspiciously close to the cost of the furniture I wanted to buy, so I have a feeling that credit line is based at least in part on how much furniture the store thinks they can sell you (although I'm sure it's also capped based on creditworthiness.)


Once several years ago before I really got involved with learning the finer points of what affects credit, I had the opposite experience and thought it was hysterical at the time. I got one of those umpteen-months-same-as-cash financing deals on a mattress and they gave me a credit limit about 5X what I was spending on the mattress. I thought was so absurd because in my head I was thinking, "you're a mattress store. That's all you sell and this is the only place I can use the card. Do you really think I'm going to come back and buy 4 more mattresses before I've finished paying off this one?" :confused:

But...

TXviking wrote:The credit card industry has caused the quest for ridiculous credit lines by penalizing people for using their available credit.

It's not unreasonable for someone to put $5K or $10K on a 0% balance transfer offer. But if your available credit is 15K, you now massively hurt your score. Having a ridiculously high limit allows you to do a transaction like that without your utilization looking "too high". That creates a direct incentive to seek out high credit lines even if you never actually use them.


Yeah, now I get that they were doing me a favor on utilization.

MemberSince99 wrote:I only have two of their cards with 7k total exposure so I don't really care what they do. I didn't lie about income but I'm not willing to submit a tax form of requested because I feel it's far too invasive. I would verify income a different and less intrusive way.if that was an option but since it's not I would just close and move on.


Yeah, I quite agree. I've never had a creditor do a financial review and I don't have anything to hide per se, but if any of my lenders ever did hit me with one I'd probably just take the account closure instead. I can't stand invasive questions from companies and hate providing anything more than the bare minimum of info necessary to do business.

kdm31091 wrote:As far as minimalism, I think the people on MF (and some other sites) go crazy and open 30 cards, obsessing about saving an extra maybe $50 a year, yet nobody stops to consider that they probably overspend by much more than that because of all their "special cards" that they need to "give love" to and keep active. It's pretty easy to throw away $50 and there you go, you wiped out your extra gains.


That's an excellent point and one that I feel people often overlook when it comes to trying to maximize rewards. It's the same phenomenon as sale shopping really. You may save on the individual items but if you're buying a bunch of stuff you wouldn't have otherwise bought it's obviously a losing game.

On the other hand if you're aware of it and okay with the extra spending I think a case can be made for going ahead with it for fun. Like going out to eat is already one of my favorite ways to spend money, and obviously I don't need to do it at all. That said, I'm well aware that I go out to eat much more when my Freedom and Discover It are offering their 5% rewards on restaurants and I'm well aware that I'm spending much more as a result (spending an extra 95% to save 5% clearly doesn't add up :ppp ), but I'm okay with it because it's fun and I can afford it.

I'd be much more concerned about overspending on the 5% grocery category for example, because I hate grocery shopping and dislike every minute of it. So accidentally spending more on that to chase rewards would really tick me off.

Amazon's a more true example in that I'm not at all biased to loving or hating it either way, so I really do just need to stop and ask myself, "would I be buying this item either way if I weren't getting extra rewards?"

kdm31091
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Re: Synch shutdowns

Postby kdm31091 » Thu Jul 21, 2016 7:59 pm

I think Amazon is one of the biggest places where people overspend to maximize their rewards. People get so hyped when Amazon is a category, and it's always much easier to overspend online because you aren't really "aware" of the spending.

JonE
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Re: Synch shutdowns

Postby JonE » Sat Jul 23, 2016 12:27 pm

Start looking at it like this: Debt=Risk to the average creditor, who could be a mortgage lender looking to gauge your viability for a housing loan. Most high income folks (I don't know or care to know the incomes of the average poster around here, none of my business!) take on debt that is deductible like a mortgage. Credit card debt is not deductible. And anyone with as little as $5000 in credit card debt making the monthly minimums can take up to 4 years to pay it off in full, and by that point that person has already paid +/- $2000 in interest (assuming Interest is averaging 18 percent).

If I'm Synchrony, and I see someone with 5+ Synch cards among 20+ others, I'm raising serious doubts as to whether I want to do business with this person. In my own personal case, my Synchrony accounts will work while I'm rebuilding (and yes, Amazon is a very popular one), after that, the 2-4 cards I have left will be major bank cards with no store cards, and very little in the way of credit spending. I don't have to be the one with 30+ cards and no other assets to show for it.
Wallet: Chase Freedom, Discover IT
Chopping Block: Synchrony
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